“Plagiarism” and “flush trading” issues forced the NFT marketplace to suspend sales

Leading NFT platform, The Cent, has announced the suspension of blockchain-based digital art sales.

The decision to suspend most transactions was made after reports surfaced that some individuals were engaging in fraudulent activity on the platform.

NFT Marketplace Suspends Sales

To be precise, unscrupulous users preferred the anonymity offered by the site in order to sell goods that did not belong to them.

Cent became aware of the scam when a screenshot of the first Twitter tweet was sold for millions. The platform was one of the first venues to list a deal that attracted a lot of public attention, as well as the first known NFT sale for millions of dollars.

The NFT space has become an integral part of a wide range of users of the crypto industry, and it has also established itself as a giant in its own right, as it recorded a surge in growth and interest, despite the collapse of the cryptocurrency market in January.

However, there have been reports and signs that the NFT space has become rife with scams, counterfeiting, and “laundering trades”. A recent report by Chainalysis showed the extent of the scam in the NFT space.

Speaking of which, the CEO and co-founder of The Cents called it a “fundamental problem,” adding:

“There is a whole range of activities that in principle should not take place – for example, legally.”

He went on to say that platform issues can be divided into three categories; the first is the fact that some people sell unauthorized copies of other people’s NFTs, the second is those who make tokens of other people’s work, and finally those who sell NFTs that can be classified as securities.

This forced Cent marketplace “beta.cent.co” to temporarily suspend NFT sales; however, the sale of digital tweets is still very active.

UK confiscates 3 NFTs

In another development, the UK’s top tax authority, HM Revenue and Customs (HMRC), seized three NFTs as part of an investigation into alleged VAT fraud involving 250 fake companies.

Authorities said three people were also arrested on suspicion of attempting to defraud the £1.4 million, adding that this is the first time that the country’s law enforcement authorities have seized digital tokens.

Speaking of the seizure, HMRC Deputy Director Nick Sharp said the confiscation would deter others from trying to hide their assets from the tax authorities.

The issue of taxation has become very acute in the crypto industry due to the different rules that protect this space in different countries.

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